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Johnson Controls (JCI) Q1 Earnings & Revenues Beat Estimates

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Johnson Controls International plc (JCI - Free Report) reported adjusted earnings of 54 cents per share in first-quarter fiscal 2018, beating the Zacks Consensus Estimate of 51 cents per share. Moreover, earnings increased 2% from 53 cents per share registered in first-quarter fiscal 2017.

Operational Update

Johnson Controls reported revenues of $7.44 billion, surpassing the Zacks Consensus Estimate of $7.19 billion. Adjusted revenues in first-quarter 2017 came in at $7.10 billion.

Cost of sales increased to $5.27 billion from $4.97 billion in the year-ago quarter. Gross profit increased to $2.17 billion from $2.11 billion in the year-ago quarter.

Selling, general and administrative expenses in fiscal first quarter totaled $1.42 billion, decreasing from the prior-year quarter figure of $1.57 billion.

Segment Results

Building Technologies & Solutions: This segment’s adjusted revenues came in at $5.3 billion, increasing from the year-ago quarter figure of $5.2 billion.

Segment EBITA decreased to $559 million from $578 million in first-quarter 2017.

Power Solutions: Adjusted revenues at the Power Solutions segment increased to $2.13 billion from $1.90 billion in first-quarter 2017. Segment EBITA came in at $384 million, down from first-quarter 2017 figure of $390 million.

Financial Position

Johnson Controls had cash and cash equivalents of $552 million as of Dec 31, 2017, increasing from $321 million as of Sep 30, 2017. Long-term debt declined to $10.9 billion in the quarter from $11.7 billion as of Sep 30, 2017.

In the reported quarter, the company repurchased 3.6 million shares for $150 million.

Guidance

Johnson Controls reaffirmed its guidance for fiscal 2018. Fiscal 2018 adjusted EPS is projected to be in the range of $2.75 to $2.85.

Zacks Rank & Key Picks

Johnson Controls currently carries a Zacks Rank #4 (Sell).

A few better-ranked stocks in the auto space are Oshkosh Corporation (OSK - Free Report) , Daimler A.G. and Allison Transmission Holding, Inc. (ALSN - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Oshkosh has an expected long-term growth rate of 14.5%. Shares of the company have gained 34.6% in the last six months.

Daimler has an expected long-term growth rate of 2.8%. In the last six months, shares of the company have increased 31%.

Allison Transmission has an expected long-term growth rate of 10%. Shares of the company have increased 19.3% in the last six months.

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